Cash Management Improvement Act Agreement

between

The State of Illinois

and

The Secretary of the Treasury,

United States Department of the Treasury

The Secretary of the Treasury, United States Department of the Treasury (hereafter 'Secretary'), and State of Illinois

(hereafter 'State'), in order to implement Section 5 of the Cash Management Improvement Act of 1990, as amended

(hereafter 'Act'), agree as follows:

1.0 AGENTS OF THE AGREEMENT

1.1 The Authorized Official(s) for the State of Illinois shall be the Director of the Governor's Office of Management and

Budget in all matters concerning this Agreement.

1.2 The Assistant Commissioner, Revenue Collections Management, Bureau of the Fiscal Service (Fiscal Service), U.S.

Department of the Treasury, shall act as the Secretary's representative in all matters concerning this Agreement.

2.0 AUTHORITY

2.1 The authority for this Agreement is the Cash Management Improvement Act of 1990 (Public Law 101-453), as

amended by the Cash Management Improvement Act of 1992 (Public Law 102-589), codified at 31 U.S.C. 6501 and 31

U.S.C. 6503.

2.2 The regulations codified at 31 CFR Part 205 shall apply to all matters pertaining to this Agreement, and are

incorporated herein by reference. In the event of any inconsistency between this Agreement and 31 CFR Part 205, the

regulations shall govern.

3.0 DURATION, AMENDING, TERMINATING, AND MISCELLANEOUS PROVISIONS

3.1 This Agreement shall take effect on 07/01/2020 and shall remain in effect until 06/30/2021.

3.2 This Agreement may be amended at any time by written, mutual consent of the State and the Fiscal Service. This

Agreement shall be amended annually to incorporate new programs that qualify as major Federal assistance programs

and remove programs that no longer qualify as major Federal assistance programs. A State must notify the Fiscal Service

in writing within 30 days of the time the State becomes aware of a change that involves additions or deletions of programs

subject to Subpart A, changes in funding techniques, and/or changes in clearance patterns. The notification must include

a proposed amendment for review by the Fiscal Service.

3.3 Notwithstanding section 3.2, in the event of Federal or State non-compliance with Subpart B of 31 CFR, Part 205, the

Fiscal Service may amend this Agreement at any time to incorporate additional programs and the entities that administer

those programs.

3.4 This Agreement may be terminated by either party with 30 days written notice. If this Agreement is terminated, the

Fiscal Service will prescribe the funding techniques, clearance patterns, and methods for calculating interest liabilities to

be used by the State.

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4.0 PROGRAMS COVERED

4.1 The State's threshold and its major Federal assistance programs shall be determined based on the State's Single

Audit for fiscal year ending 06/30/2019.

All major Federal assistance programs shall be covered by this Agreement, unless otherwise specified in section 4.4 of

this Agreement.

4.2 The State's threshold for major Federal assistance programs is $70,064,000.

The following programs meet or exceed the threshold and are not excluded in Section 4.4:

10.551 Supplemental Nutrition Assistance Program

10.553 School Breakfast Program

10.555 National School Lunch Program

10.557 Special Supplemental Nutrition Program for Women, Infants, and Children

10.558 Child and Adult Care Food Program

10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program

17.225F Unemployment Insurance -- Federal Benefit Account and Administrative Costs

17.225S Unemployment Insurance -- State Benefit Account

20.205 Highway Planning and Construction

66.458 Capitalization Grants for Clean Water State Revolving Funds

84.010 Title I Grants to Local Educational Agencies

84.027 Special Education -- Grants to States

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to States

84.367 Improving Teacher Quality State Grants

93.558 Temporary Assistance for Needy Families

93.563 Child Support Enforcement

93.568 Low-Income Home Energy Assistance

93.575 Child Care and Development Block Grant

93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund

93.658 Foster Care -- Title IV-E

93.659 Adoption Assistance

93.667 Social Services Block Grant

93.767 Children's Health Insurance Program

93.778 Medical Assistance Program

96.001 Social Security -- Disability Insurance

4.3 The following programs fall below the State's threshold but have been required to be covered by Fiscal Service in

accordance with the non-compliance provisions of Subpart B of 31 CFR Part 205:

There are currently no programs listed for Section 4.3.

4.4 The following programs exceed the State's threshold but have been excluded from coverage for the reason indicated:

84.032 Federal Family Education Loans --- Exclusion:Non-State

93.268 Immunization Grants --- Exclusion:Non-Cash

5.0 ENTITIES COVERED

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5.1 State agencies and instrumentalities that meet the definition of a State per 31 CFR Part 205, shall be subject to the

terms of this Agreement. The following is a list of such entities that administer funds under the programs listed in Section

4.0 of this Agreement:

Department of Children and Family Services (DCFS)

Department of Commerce & Economic Opportunity (DCEO)

Department of Employment Security (DES)

Department of Healthcare & Family Services (HFS)

Department of Human Services (DHS)

Department of Transportation (DOT)

Illinois Environmental Protection Agency (IEPA)

Illinois Student Assistance Commission (ISAC)

State Board of Education (SBE)

5.2 Entities that meet the definition of a Fiscal Agent per 31 CFR Part 205 shall be subject to the terms of this Agreement.

The following is a list of Fiscal Agents that administer funds under the programs listed in the Section 4.0 of this

Agreement:

Wells Fargo Bank 10.551 Supplemental Nutrition Assistance Program

Wells Fargo Bank 10.557 Special Supplemental Nutrition Program for Women, Infants, and Children

6.0 FUNDING TECHNIQUES

6.1 General Terms

6.1.1 The State shall request Federal funds in accordance with the appropriate cut-off times shown in Exhibit I to ensure

funds will be received and credited to a State account by the times specified in the funding techniques. Exhibit I is

incorporated by reference herein.

6.1.2 The State shall schedule the receipt of Federal funds such that the funds are received and credited to a State

account in accordance with the clearance patterns specified in Exhibit II - List of State Clearance Patterns. Exhibit II is

incorporated by reference herein.

6.1.3 In instances where the receipt of funds is scheduled for a Saturday, the State shall request funds for deposit on

Friday. In instances where the receipt of funds is scheduled for a Sunday, the State shall request funds for deposit on

Monday. In instances where the receipt of Federal funds is scheduled for deposit on a day when the State is not open for

business, the State shall request funds for deposit the day following the scheduled day; in instances where the receipt of

Federal funds is scheduled for deposit on a day when the Federal Government is not open for business, the State shall

request funds for deposit the day prior to the scheduled day.

6.1.4 Estimates and Reconciliation of Estimates:

Where estimated expenditures are used to determine the amount of the drawdown, the State will indicate in the terms of

the State unique funding technique how the estimated amount is determined and when and how the State will reconcile

the difference between the estimate and the State's actual expenditures.

6.1.5 Supplemental Funding:

Unless otherwise defined by program rules, Supplemental Funding is the award of additional funds to provide for an

increase in costs due to unforeseen circumstances.

The State will comply with all Federal program agency policies and procedures for requesting supplemental grant funding.

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The State will comply with the following guidelines when requesting supplemental funding for the Medical Assistance

Program and associated administrative payments (CFDA 93.778):

The State must submit a revised Medicaid Program Budget Report (CMS-37) to request supplemental funding. The CMS

guidelines and instructions for completing the CMS-37 are provided in Section 2600F of the State Medicaid Manual

(SMM). The CMS/CO must receive the revised Form CMS-37 through the Medicaid Budget Expenditure

System/Children's Budget Expenditure System (MBES/CBES) no later than 10 calendar days before the end of the

quarter for which the supplemental grant award is being requested.

Additional guidance on this policy is available from the respective CMS Regional Office, U.S. Department of Health &

Human Services.

The State will comply with the following guidelines when requesting supplemental funding for TANF (CFDA 93.558),

CCDF (CFDA 93.575), CSE (93.563), and the FC/AA (CFDA 93.658 and CFDA 93.659) programs administered by the

U.S. Department of Human Services, Administration for Children and Families (HHS/ACF):

a. Timing of the Request

A State should initiate its request for supplemental funding during a quarter as soon as it becomes aware of the fact that a

shortfall does/will exist. For the TANF and CCDF grants, supplemental funding requests (estimates) may be submitted by

a State, for consideration by ACF, up through and including the 15th day of the third month of the first, second or third

quarter of any fiscal year. Since TANF and CCDF are block grant programs, all unawarded portions of the annual

allotment will automatically be issued at the beginning of the fourth quarter. Therefore, supplemental funding requests will

not be available during the fourth quarter for these programs. For the CSE and FC/AA programs, supplemental funding

requests may be submitted by a State, for consideration by ACF, up through and including the 15th day of the third month

of any quarter of a fiscal year.

b. Justification for the Request

The request for a supplemental funding for any of the above mentioned programs should contain a justification clearly

documenting the need for the additional funding authority during the current quarter. This documentation should be in the

form of State accounting records or similar documents that will show the actual expenditures through the most recent

month for which such data are available, as well as the State's most accurate projection of its anticipated expenditures

during the remaining month(s) of the quarter. For either the TANF or the CCDF program, the State's justification should

also include an explanation of the activities requiring the obligation and/or expenditure of amounts that exceed the normal

quarterly grant award restrictions and why these activities could not have been delayed until the next quarter.

c. Form Submittal

Supplemental funding requests should be made by completing the appropriate ACF quarterly report of expenditures and

estimates applicable to the particular program for which the grant award request is being made.

d. Approval Process

Upon receipt of the State's request for additional funding authority for a quarter, the ACF Regional Office will promptly

review the supporting documentation. If the request is properly justified, so long as ACF has adequate funding

availability, the State's request will be expedited and supplemental funding will be issued within 5 days of ACF receiving

the request. The State will be notified by the Regional Office when the supplemental award has been transmitted to the

Payment Management System (PMS) and when it may initiate drawdowns against the supplemental funding.

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Additional guidance on this policy is provided in the U.S. Department of Health & Human Services, Administration for

Children and Families, letter (May 19, 2004) to State Administrators from the Deputy Assistant Secretary for

Administration.

6.2 Description of Funding Techniques

6.2.1 The following are terms under which standard funding techniques shall be implemented for all transfers of funds to

which the funding technique is applied in section 6.3.2 of this Agreement.

Average Clearance

The State shall request funds such that they are deposited by ACH on the dollar-weighted average day of clearance for

the disbursement, in accordance with the clearance pattern specified in Exhibit II. The request shall be made in

accordance with the appropriate Federal agency cut-off time specified in Exhibit I. The amount of the request shall be for

the exact amount of that disbursement. This funding technique is interest neutral.

Payment Schedule - Monthly

The State shall request funds such that they are deposited in a State account on the median business day of the month.

The request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit I. The

amount of the request shall be a prorated share of the lesser of (1) the annual grant divided by 12, or (2) the total amount

of Federal funds expected to be paid out for program purposes during the year divided by 12. This funding technique is

interest neutral.

Payment Schedule - Quarterly

The State shall request funds such that they are deposited in a State account on the median business day of the quarter.

The request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit I. The

amount of the request shall be a prorated share of (1) the lesser of the annual grant divided by 4, or (2) the total amount

of Federal funds expected to be paid out for program purposes during the year divided by 4. This funding technique is

interest neutral.

Pre-Issuance

The State shall request funds such that they are deposited in a State account not more than three business days prior to

the day the State makes a disbursement. The request shall be made in accordance with the appropriate Federal agency

cut-off time specified in Exhibit I. The amount of the request shall be the amount the State expects to disburse. This

funding technique is not interest neutral.

6.2.2 The following are terms under which funding techniques for administrative costs shall be implemented for all

transfers of funds to which the funding technique is applied in section 6.3.2 of this Agreement.

Direct Administrative Costs - Drawdowns at Fixed Intervals

The State shall request funds once a month, such that they are deposited on the day of the month specified for each

component. The request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit

I. The amount of the request shall be based on the amount of actual cash outlays for direct administrative costs during the

month. This funding technique is interest neutral.

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6.2.3 The following are terms under which miscellaneous funding techniques shall be implemented for all transfers of

funds to which the funding technique is applied in section 6.3.2 of this Agreement.

Capitalization Grants for State Revolving Funds

The State shall request funds to minimize the time between the drawdown of funds from Treasury and their deposit into

the revolving fund. The timing of the drawdown of Federal funds for deposit to the revolving fund is subject to the interest

provisions of 31 CFR Part 205, however there is an interest exemption for the interest the State earns once the funds are

deposited into the revolving fund. The request for funds shall be made in accordance with the appropriate Federal agency

cut-off time specified in Exhibit I. The amount of the request shall be for the amount of the funds to be used for immediate

program purposes. The State will not incur an interest liability for interest earned on revolving fund loans. This funding

technique is interest neutral.

6.2.4 The following are terms under which State unique funding techniques shall be implemented for all transfers of funds

to which the funding technique is applied in section 6.3.2 of this Agreement.

Indirect Costs - Quarterly with Reconciliation

The State shall request funds at the end of each quarter so that they are deposited in a State account after the last payroll

of each quarter. After the completion of each quarter's payroll, reconciliation will be done prior to requesting of the

quarterly draw. The request shall be made in accordance with the appropriate Federal agency cut-off time specified in

Exhibit I. The amount of the request shall be the annual amount of indirect costs based on the federally approved

estimated indirect cost rate divided by 4. This funding technique is interest neutral.

Modified Actual Clearance, ZBA - ACH

The State Contractor (Contractor) shall request funds such that they are deposited by ACH in a Contractor account on the

settlement date of payments issued by the State. The request shall be made in accordance with the appropriate Federal

agency cut-off time specified in Exhibit I. The amount of the request shall be for the amount of funds that clear the

Contractor's account on the settlement date. This funding technique is interest neutral.

Modified Actual Costs - Estimated Allocation - Semi-Monthly

The State shall request funds at semi-monthly intervals, such that funds are deposited on the date of the State paydays.

The request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit I. The

amount of the request is the lesser of one-sixth of the estimated allocation derived from actual costs distributed to the

program according to the allocation statistics of the prior quarter or one-sixth of the quarter's grant award. The State will

adjust the drawdown of the actual allocation at the end of the quarter based on the approved cost allocation plan. This

funding technique is interest neutral.

Modified Payment Schedule - Monthly

The State shall request funds such that they are deposited in a State account on the median business day of the month.

The request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit I. The

amount of the request shall be a prorated share of the lesser of (1) the quarterly grant award divided by 3, or (2) the total

amount of Federal funds expected to be paid out for program purposes during the quarter divided by 3. This funding

technique is interest neutral.

Modified Payment Schedule - Semi-Monthly

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The State shall request funds that they are deposited in a State account on the average clearance date of payroll. The

request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit I. The amount of

the request shall be a pro-rated share of the lesser of (1) the annual grant divided by 24, or (2) the total amount of Federal

funds expected to be paid out for program purposes during the year divided by 24. This funding technique is interest

neutral.

Modified Payment Schedule - Semi-Monthly with Reconciliation

The State shall request funds such that they are deposited in a State account not earlier than the first business day

following the end of the payroll period. The request shall be made in accordance with the appropriate Federal agency cutoff time specified in Exhibit I. The amount of the request shall be a prorated share of the lesser of (1) the annual grant

divided by 24, or (2) the total amount of Federal funds expected to be paid out for program purposes during the year

divided by 24, reconciling after each month and adjusting the request for funds to the actual payments during the

preceding month. This funding technique is interest neutral.

Modified Payment Schedule - Weekly

The state shall request funds such that they are deposited in a State account on the median business day of the week.

The request shall be made in accordance with the appropriate Federal agency cut-off tine specified in Exhibit I. The

amount of the request shall be a pro-rated share of the lesser of (1) the annual quarterly grant divided by 13, or (2) the

total amount of Federal funds expected to be paid out for program purposes during the quarter divided by 13. This

funding technique is interest neutral.

Modified Payment Schedule - Weekly (Thursday)

The State shall request funds such that they are deposited in a State account on Thursday of each week. The request

shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit I. The amount of the

request shall be the estimated amount of Federal funds expected to be paid out to participating contractors and vendors.

This funding technique is interest neutral.

Reimbursement Funding

The state shall request funds once a month, after reports containing the amount of actual cash outlays for direct program

costs are available, and deposited into a special state fund. The Federal government will not incur interest liabilities for

this technique as state rules require deposits into the fund to be based on actual amounts. No reconciliation is necessary.

 This funding technique is interest neutral.

6.3 Application of Funding Techniques to Programs

6.3.1 The State shall apply the following funding techniques when requesting Federal funds for the component cash flows

of the programs listed in sections 4.2 and 4.3 of this Agreement.

6.3.2 Programs

Below are programs listed in Section 4.2 and Section 4.3.

10.551 Supplemental Nutrition Assistance Program

Recipient: Department of Human Services (DHS)

% of Funds Agency Receives: 100.00

Component: Program

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Technique: Modified Actual Clearance, ZBA - ACH

Average Day of Clearance: N/A

10.553 School Breakfast Program

Recipient: State Board of Education (SBE)

% of Funds Agency Receives: 1.00

Component: Indirect Costs

Technique: Payment Schedule - Quarterly

Average Day of Clearance: N/A

Recipient: State Board of Education (SBE)

% of Funds Agency Receives: 1.00

Component: Payroll

Technique: Pre-Issuance

Average Day of Clearance: N/A

Recipient: State Board of Education (SBE)

% of Funds Agency Receives: 1.00

Component: Administration

Technique: Pre-Issuance

Average Day of Clearance: N/A

Recipient: State Board of Education (SBE)

% of Funds Agency Receives: 97.00

Component: Program

Technique: Pre-Issuance

Average Day of Clearance: N/A

10.555 National School Lunch Program

Recipient: State Board of Education (SBE)

% of Funds Agency Receives: 100.00

Component: Program

Technique: Pre-Issuance

Average Day of Clearance: N/A

10.557 Special Supplemental Nutrition Program for Women, Infants, and Children

Recipient: Department of Human Services (DHS)

% of Funds Agency Receives: 2.00

Component: Payroll

Technique: Modified Payment Schedule - Semi-Monthly

Average Day of Clearance: N/A

Recipient: Department of Human Services (DHS)

% of Funds Agency Receives: 97.00

Component: Program

Technique: Pre-Issuance

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Average Day of Clearance: N/A

Recipient: Department of Human Services (DHS)

% of Funds Agency Receives: 1.00

Component: Admin

Technique: Pre-Issuance

Average Day of Clearance: N/A

10.558 Child and Adult Care Food Program

Recipient: State Board of Education (SBE)

% of Funds Agency Receives: 1.00

Component: Indirect

Technique: Payment Schedule - Quarterly

Average Day of Clearance: N/A

Recipient: State Board of Education (SBE)

% of Funds Agency Receives: 1.00

Component: Payroll

Technique: Pre-Issuance

Average Day of Clearance: N/A

Recipient: State Board of Education (SBE)

% of Funds Agency Receives: 97.00

Component: Program

Technique: Pre-Issuance

Average Day of Clearance: N/A

Recipient: State Board of Education (SBE)

% of Funds Agency Receives: 1.00

Component: Admin

Technique: Pre-Issuance

Average Day of Clearance: N/A

10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program

Recipient: Department of Human Services (DHS)

% of Funds Agency Receives: 100.00

Component: All Funds

Technique: Modified Payment Schedule - Semi-Monthly

Average Day of Clearance: N/A

17.225F Unemployment Insurance -- Federal Benefit Account and Administrative Costs

Recipient: Department of Employment Security (DES)

% of Funds Agency Receives: 15.00

Component: Payroll

Technique: Modified Payment Schedule - Semi-Monthly with Reconciliation

Average Day of Clearance: N/A

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Recipient: Department of Employment Security (DES)

% of Funds Agency Receives: 6.00

Component: Admin

Technique: Modified Payment Schedule - Semi-Monthly with Reconciliation

Average Day of Clearance: N/A

Recipient: Department of Employment Security (DES)

% of Funds Agency Receives: 79.00

Component: Program

Technique: Pre-Issuance

Average Day of Clearance: N/A

17.225S Unemployment Insurance -- State Benefit Account

Recipient: Department of Employment Security (DES)

% of Funds Agency Receives: 100.00

Component: Program

Technique: Pre-Issuance

Average Day of Clearance: N/A

20.205 Highway Planning and Construction

Recipient: Department of Transportation (DOT)

% of Funds Agency Receives: 98.00

Component: Program

Technique: Modified Payment Schedule - Weekly (Thursday)

Average Day of Clearance: N/A

Recipient: Department of Transportation (DOT)

% of Funds Agency Receives: 2.00

Component: Payroll

Technique: Modified Payment Schedule - Weekly (Thursday)

Average Day of Clearance: N/A

66.458 Capitalization Grants for Clean Water State Revolving Funds

Recipient: Illinois Environmental Protection Agency (IEPA)

% of Funds Agency Receives: 100.00

Component: Program

Technique: Capitalization Grants for State Revolving Funds

Average Day of Clearance: N/A

84.010 Title I Grants to Local Educational Agencies

Recipient: State Board of Education (SBE)

% of Funds Agency Receives: 1.00

Component: Indirect

Technique: Payment Schedule - Quarterly

Average Day of Clearance: N/A

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Recipient: State Board of Education (SBE)

% of Funds Agency Receives: 1.00

Component: Payroll

Technique: Pre-Issuance

Average Day of Clearance: N/A

Recipient: State Board of Education (SBE)

% of Funds Agency Receives: 97.00

Component: Program

Technique: Pre-Issuance

Average Day of Clearance: N/A

Recipient: State Board of Education (SBE)

% of Funds Agency Receives: 1.00

Component: Admin

Technique: Pre-Issuance

Average Day of Clearance: N/A

84.027 Special Education -- Grants to States

Recipient: State Board of Education (SBE)

% of Funds Agency Receives: 1.00

Component: Indirect

Technique: Payment Schedule - Quarterly

Average Day of Clearance: N/A

Recipient: State Board of Education (SBE)

% of Funds Agency Receives: 96.00

Component: Program

Technique: Pre-Issuance

Average Day of Clearance: N/A

Recipient: State Board of Education (SBE)

% of Funds Agency Receives: 1.00

Component: Payroll

Technique: Pre-Issuance

Average Day of Clearance: N/A

Recipient: State Board of Education (SBE)

% of Funds Agency Receives: 2.00

Component: Admin

Technique: Pre-Issuance

Average Day of Clearance: N/A

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to States

Recipient: Department of Children and Family Services (DCFS)

% of Funds Agency Receives: 6.00

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Component: Indirect

Technique: Indirect Costs - Quarterly with Reconciliation

Average Day of Clearance: N/A

Recipient: Department of Human Services (DHS)

% of Funds Agency Receives: 48.00

Component: Direct Payroll

Technique: Modified Payment Schedule - Semi-Monthly

Average Day of Clearance: N/A

Recipient: Department of Human Services (DHS)

% of Funds Agency Receives: 46.00

Component: Program

Technique: Pre-Issuance

Average Day of Clearance: N/A

84.367 Improving Teacher Quality State Grants

Recipient: State Board of Education (SBE)

% of Funds Agency Receives: 1.00

Component: Indirect

Technique: Payment Schedule - Quarterly

Average Day of Clearance: N/A

Recipient: State Board of Education (SBE)

% of Funds Agency Receives: 1.00

Component: Payroll

Technique: Pre-Issuance

Average Day of Clearance: N/A

Recipient: State Board of Education (SBE)

% of Funds Agency Receives: 1.00

Component: Admin

Technique: Pre-Issuance

Average Day of Clearance: N/A

Recipient: State Board of Education (SBE)

% of Funds Agency Receives: 97.00

Component: Program

Technique: Pre-Issuance

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families

Recipient: Illinois Student Assistance Commission (ISAC)

% of Funds Agency Receives: 12.00

Component: Program

Technique: Payment Schedule - Monthly

Page 12 of 38
Average Day of Clearance: N/A

Recipient: Department of Human Services (DHS)

% of Funds Agency Receives: 38.00

Component: Program

Technique: Payment Schedule - Monthly

Average Day of Clearance: N/A

Recipient: State Board of Education (SBE)

% of Funds Agency Receives: 9.00

Component: Program

Technique: Payment Schedule - Monthly

Average Day of Clearance: N/A

Recipient: Department of Children and Family Services (DCFS)

% of Funds Agency Receives: 41.00

Component: Program

Technique: Payment Schedule - Monthly

Average Day of Clearance: N/A

93.563 Child Support Enforcement

Recipient: Department of Healthcare & Family Services (HFS)

% of Funds Agency Receives: 100.00

Component: Admin

Technique: Modified Actual Costs - Estimated Allocation - Semi-Monthly

Average Day of Clearance: N/A

93.568 Low-Income Home Energy Assistance

Recipient: Department of Commerce & Economic Opportunity (DCEO)

% of Funds Agency Receives: 4.00

Component: Payroll

Technique: Average Clearance

Average Day of Clearance: 4 Days

Recipient: Department of Commerce & Economic Opportunity (DCEO)

% of Funds Agency Receives: 96.00

Component: Program

Technique: Average Clearance

Average Day of Clearance: 3 Days

93.575 Child Care and Development Block Grant

Recipient: Department of Human Services (DHS)

% of Funds Agency Receives: 100.00

Component: Program

Technique: Payment Schedule - Monthly

Average Day of Clearance: N/A

Page 13 of 38
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund

Recipient: Department of Human Services (DHS)

% of Funds Agency Receives: 100.00

Component: All Funds

Technique: Payment Schedule - Monthly

Average Day of Clearance: N/A

93.658 Foster Care -- Title IV-E

Recipient: Department of Children and Family Services (DCFS)

% of Funds Agency Receives: 67.00

Component: Program

Technique: Modified Payment Schedule - Monthly

Average Day of Clearance: N/A

Recipient: Department of Children and Family Services (DCFS)

% of Funds Agency Receives: 3.00

Component: Indirect

Technique: Modified Payment Schedule - Monthly

Average Day of Clearance: N/A

Recipient: Department of Children and Family Services (DCFS)

% of Funds Agency Receives: 13.00

Component: Admin

Technique: Modified Payment Schedule - Monthly

Average Day of Clearance: N/A

Recipient: Department of Children and Family Services (DCFS)

% of Funds Agency Receives: 17.00

Component: Payroll

Technique: Modified Payment Schedule - Monthly

Average Day of Clearance: N/A

93.659 Adoption Assistance

Recipient: Department of Children and Family Services (DCFS)

% of Funds Agency Receives: 1.00

Component: Indirect

Technique: Modified Payment Schedule - Monthly

Average Day of Clearance: N/A

Recipient: Department of Children and Family Services (DCFS)

% of Funds Agency Receives: 90.00

Component: Program

Technique: Modified Payment Schedule - Monthly

Average Day of Clearance: N/A

Recipient: Department of Children and Family Services (DCFS)

Page 14 of 38
% of Funds Agency Receives: 6.00

Component: Admin

Technique: Modified Payment Schedule - Monthly

Average Day of Clearance: N/A

Recipient: Department of Children and Family Services (DCFS)

% of Funds Agency Receives: 3.00

Component: Payroll

Technique: Modified Payment Schedule - Monthly

Average Day of Clearance: N/A

93.667 Social Services Block Grant

Recipient: Department of Human Services (DHS)

% of Funds Agency Receives: 100.00

Component: Program

Technique: Payment Schedule - Monthly

Average Day of Clearance: N/A

93.767 Children's Health Insurance Program

Recipient: Department of Healthcare & Family Services (HFS)

% of Funds Agency Receives: 90.00

Component: Program

Technique: Average Clearance

Average Day of Clearance: 3 Days

Recipient: Department of Healthcare & Family Services (HFS)

% of Funds Agency Receives: 6.00

Component: Admin

Technique: Modified Actual Costs - Estimated Allocation - Semi-Monthly

Average Day of Clearance: N/A

Recipient: Department of Healthcare & Family Services (HFS)

% of Funds Agency Receives: 4.00

Component: Program

Technique: Reimbursement Funding

Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Healthcare & Family Services (HFS)

% of Funds Agency Receives: 69.00

Component: Program

Technique: Average Clearance

Average Day of Clearance: 3 Days

Recipient: Department of Healthcare & Family Services (HFS)

% of Funds Agency Receives: 2.00

Page 15 of 38
Component: Admin

Technique: Direct Administrative Costs - Drawdowns at Fixed Intervals

Average Day of Clearance: N/A

Recipient: Department of Healthcare & Family Services (HFS)

% of Funds Agency Receives: 6.00

Component: Admin

Technique: Modified Actual Costs - Estimated Allocation - Semi-Monthly

Average Day of Clearance: N/A

Recipient: Department of Healthcare & Family Services (HFS)

% of Funds Agency Receives: 6.00

Component: Program

Technique: Modified Payment Schedule - Weekly

Average Day of Clearance: N/A

Recipient: Department of Healthcare & Family Services (HFS)

% of Funds Agency Receives: 2.00

Component: Program

Technique: Pre-Issuance

Average Day of Clearance: N/A

Recipient: Department of Healthcare & Family Services (HFS)

% of Funds Agency Receives: 15.00

Component: Program

Technique: Pre-Issuance

Average Day of Clearance: N/A

96.001 Social Security -- Disability Insurance

Recipient: Department of Human Services (DHS)

% of Funds Agency Receives: 11.00

Component: Indirect Costs

Technique: Indirect Costs - Quarterly with Reconciliation

Average Day of Clearance: N/A

Recipient: Department of Human Services (DHS)

% of Funds Agency Receives: 62.00

Component: Payroll

Technique: Modified Payment Schedule - Semi-Monthly

Average Day of Clearance: N/A

Recipient: Department of Human Services (DHS)

% of Funds Agency Receives: 27.00

Component: Program

Technique: Pre-Issuance

Average Day of Clearance: N/A

Page 16 of 38
6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:

None.

6.3.4 Percentages listed under Section 6.3.2 shall be viewed as estimates. All percentages are rounded to the nearest

whole number. Percentages listed as zero shall be interpreted to mean the component represents less than one percent.

6.4 For payment schedules, neither the State nor Federal government shall be liable for interest if funds are requested for

deposit in a State account on the median business or calendar day of the month. If an interest neutral funding technique is

violated, the State shall be liable for interest for the amount of Federal funds received in excess of the specified funding

technique on a pre-issuance basis.

7.0 CLEARANCE PATTERNS

7.1 The State shall develop separate clearance patterns for each of the following:

Each program or program component as required in section 6.3.2 under the agreement.

7.2 The following shall develop the State's clearance patterns:

Each entity which receives Federal funds shall be responsible for the development of its own clearance patterns.

7.3 The sources of data the State shall use when developing its clearance patterns are as follows:

State accounting records.

7.4 The State shall use the following methodology when developing its clearance patterns:

When developing each clearance pattern, the State shall track at least 99% of the funds disbursed, from issuance to

clearance, for a period of at least three months.

For all clearance patterns developed by statistical sampling, the State shall randomly sample checks to ensure, at a

minimum, a 95% confidence interval for a .25 weighted-day level of precision for the checks in the sample. The State

shall track at least 99% of the funds disbursed, from issuance to clearance, in the sample period.

7.4.1 Or the Agency shall determine the time Federal funds are held in a State account prior to disbursement by

calculating the dollar-weighted average pre-issuance time for all Federal funds deposited during the state fiscal year for

the applicable grant. The Agency will identify all checks or warrants as its population.

7.5 The State shall identify for each check or warrant (hereafter, check) in the population: (1) the date the check was

released for payment; (2) the date the check was debited from the State's account, and, (3) the amount of the check.

7.5.1 In each calculation made by the State the Agency shall use 0 (zero) days as the time from issuance to clearance of

payments made to individuals through electronic payments for purposes of payroll.

In each calculation made by the State the Agency shall use 2 (two) days as the number of days relating to the interval of

time from issuance to clearance for electronic payments made relating to non-payroll disbursements.

7.6 The State shall use the following method to calculate the dollar-weighted average day of clearance:

Page 17 of 38
To determine the number of days each check was outstanding (clearance time), the issue date shall be subtracted from

the date the check cleared the State's account.

To determine the percentage of the disbursement paid out each day following issuance, the amount of the checks that

clear the State's account each day shall be summed and then divided by the amount of the total disbursement.

For each day following issuance, the clearance time of the checks paid out that day shall be multiplied by the percentage

of the total disbursement those checks represent. This product is the clearance factor.

The dollar-weighted average day of clearance for the disbursement shall be determined by summing the clearance factor

of each day following the disbursement.

7.7 The State shall adjust each clearance pattern to reflect the dollar-weighted proportion of funds paid out by EFT/Direct

payroll, with the following exceptions:

None

The State shall also adjust each clearance pattern to reflect:

None

7.8 Each of the State's clearance patterns is calculated in business days.

7.8.1 Calendar days shall be used to develop clearance patterns in the following cases:

1. All calculations by the Illinois Department of Employment Security

2. All calculations by the Illinois Department of Transportation

3. All calculations by the Department of Commerce and Economic Opportunity

7.9 An authorized State official shall certify that each clearance pattern developed by the State accurately corresponds to

the clearance activity of the programs to which it is applied. This certification shall be provided to the Fiscal Service prior

to the effective date of the Agreement. The State shall recertify its clearance patterns at least every five years.

7.10 The State shall follow the procedures of 31 CFR 205 if it has actual or constructive knowledge, at any time, that a

clearance pattern does not correspond to a program's clearance activity.

8.0 INTEREST CALCULATION METHODOLOGY

8.1 General Terms

8.1.1 The State and the Secretary agree that no interest liabilities will be incurred for transfers of funds made in

accordance with the procedures specified in section 6 of this Agreement where the following funding techniques are

applied:

Average Clearance

Capitalization Grants for State Revolving Funds

Direct Administrative Costs - Drawdowns at Fixed Intervals

Indirect Costs - Quarterly with Reconciliation

Modified Actual Clearance, ZBA - ACH

Page 18 of 38
Modified Actual Costs - Estimated Allocation - Semi-Monthly

Modified Payment Schedule - Monthly

Modified Payment Schedule - Semi-Monthly

Modified Payment Schedule - Semi-Monthly with Reconciliation

Modified Payment Schedule - Weekly

Modified Payment Schedule - Weekly (Thursday)

Payment Schedule - Monthly

Payment Schedule - Quarterly

Reimbursement Funding

8.1.2 The State shall maintain information on disbursements and receipts of funds to verify the implementation of any

funding technique and document interest liabilities.

For each disbursement, the State shall be able to identify:

(1) amount of the issuance

(2) date of issuance

(3) date Federal funds are received and credited to a State account

(4) amount of Federal funds received

(5) date funds were requested

8.2 Federal Interest Liabilities

8.2.1 A Federal interest liability shall accrue from the day the State pays out its own funds for program purposes to the

day Federal funds are credited to a State account. With regard to funds transferred out of the Federal Highway Trust

Fund, if a State does not bill at least weekly for current project costs, the Federal interest liability shall not accrue prior to

the day the State submits a request for funds.

8.2.2 The State shall use the following method to calculate Federal interest liabilities:

Actual Activity:

For all transactions where the State pays out its own funds for program purposes prior to receiving Federal funds, the

State shall track each payment from the date it is paid out of a State account to the date Federal funds are subsequently

credited to a State account to cover that outlay. The Federal interest liability on each payment shall be based on the

difference in whole days between the two events. With Federal-State matching programs, interest shall be calculated on

the Federal percentage of the disbursement.

8.3 The Unemployment Trust Fund

8.3.1 The State shall use the following method to calculate State interest liabilities on funds withdrawn from the several

accounts in the Unemployment Trust Fund:

Federal and State Funds are Not Interest Neutral:

The State shall use the following methodology to calculate State interest liabilities on funds withdrawn from the several

accounts in the UTF under the Unemployment Insurance program.

Based on statements provided by its financial institution, or other appropriate source, the State shall determine the actual

interest earnings and the related banking costs attributable to funds withdrawn from its account in the UTF.

At the end of the State's fiscal year, the State shall calculate the percentage of its total unemployment compensation

expenditures for (1) funds withdrawn from the State account in the UTF, or the State %, and (2) funds withdrawn from the

Page 19 of 38
Federal Employees Compensation Account (FECA) and the Extended Unemployment Compensation Account (EUCA)

and any other accounts of Federal funds in the UTF, or the Federal %.

The State shall calculate the actual interest earnings and the related banking costs attributable to funds withdrawn from

the State account in the UTF by multiplying the State % by the amount of the actual interest earnings and the related

banking costs of the account as a whole. The States liability for interest on funds withdrawn from its account in the UTF

shall consist of the actual interest earnings attributable to such funds less the related banking costs attributed to such

funds.

The State shall determine the average daily cash balance of its unemployment compensation benefit payment account for

its fiscal year. The State shall calculate the average daily cash balance of Federal funds by multiplying the Federal % by

the average daily cash balance of the benefit payment account on the whole. The States liability for interest on funds

withdrawn from the FECA and EUCA (and any other benefit accounts of Federal funds in the UTF from which the State

draws funds) shall be the average daily cash balance of Federal funds multiplied by the annualized rate equal to the

average equivalent yields of 13-week Treasury bills auctioned during the States fiscal year.

8.4 Refund Liabilities

8.4.1 The State shall be liable for interest on refunds from the date the refund is credited to a State account until the date

the refund is debited from the State account for program purposes. The State shall apply a $50,000 refund transaction

threshold below which the State shall not incur or calculate interest liabilities on refunds. A transaction is defined as a

single deposit.

8.4.2 For each refund, the State shall maintain information identifying:

(1) date a refund is credited to a State account

(2) date of the subsequent deposit of Federal funds against which the refund is offset

(3) amount of the refund

8.4.3 The State shall use the following methodology to calculate interest liabilities on refunds:

Refunds Deposited to Non-Interest Neutral Programs - Liability Captured Manually by Each Agency:

For programs to which applicable non-interest neutral funding techniques are applied, each State agency shall maintain

records identifying:

(1)	the date of the refund

(2)	the date the refund is offset against subsequent deposit of Federal funds

(3)	the check issue date for the disbursement related to the subsequent deposit of Federal funds

(4)	the amount of the refund

Interest shall be calculated based on the difference in whole days between the date the refund is deposited in a State

account and the date the refund is paid out for program purposes. The State shall measure this period by dividing it into

three periods: the pre-offset period, the pre-disbursement period, and the clearance period.

The pre-offset period is from deposit of the refund to the subsequent deposit of Federal funds against which the refund is

offset. The pre-disbursement period is from the deposit of Federal funds against which the refund is offset to the issuance

of checks, as measured by period one calculations. The clearance period is from the issuance of checks to the clearance

of checks.

Page 20 of 38
8.4.4 There is no interest liability on WIC rebates, as per the 1994 Appropriation Act, if used for program purposes.

There is no interest liability on WIC funds transferred from the State Treasury to the WIC Fiscal Agent.

8.5 Exemptions

8.5.1 Where more than one State agency is a recipient of Federal funds under a program, a particular State agency's

funding may be excluded from interest calculation procedures if the State agency receives an amount of funds less than 5

% of the State's threshold for major Federal assistance programs. Notwithstanding this potential exemption, however, in

no case shall less than 90% of a program's total funding be subject to interest calculation procedures.

Proration of calculations: If less than total program funding is subject to interest calculation procedures, the resulting

interest liability calculations shall be prorated to 100% of program funding.

8.6 State Interest Liabilities

8.6.1 The State shall be liable for interest on Federal funds from the date Federal funds are credited to a State account

until the date those funds are paid out for program purposes.

8.6.2 The State shall use the following method to calculate State interest liabilities on Federal funds:

8.6.2.1 Measuring Time Funds Are Held

Deposit to Clearance:

To determine the total time Federal cash draws are held, the State shall measure the time between the date Federal

funds are received and credit to a State's account and the date those funds are debited from the State's account.

Clearance Patterns:

The time period from issuance of funds to the date funds are debited from the States account shall be determined by the

appropriate clearance pattern specified in Exhibit II.

8.6.2.2 Source of Data

Bank or Agency:

The time period from warrant issuance or electronic funds transfer shall be determined from information captured by the

agency accounting system.

8.6.2.3 Standards Applied

Census (Average Daily Balance):

The average daily cash balance of Federal funds in the program's account reflects the actual activity of each draw from

the date of deposit to the date of issuance or clearance, whichever is pertinent.

8.6.2.4 Calculation Procedure

Average Daily Balance:

I = ADB x R x Days Held, where

I = States interest liability

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ADB = Average Daily Balance of Federal funds in a programs account, measured from deposit to clearance.

R = daily Interest Rate calculated by the Bureau of the Fiscal Service (of the U.S. Department of the Treasury) for states

with fiscal years beginning July 1.

Days Held = Difference in whole days between the Clearance Pattern specified in Exhibit II and the days measured as

Deposit to Clearance in 8.6.2.1.

8.7 Where applicable, Sections 8.2, 8.4, and 8.6, including all subsections, shall only apply to programs operated by the

Illinois Department of Healthcare and Family Services.

Note: The CMIAS system is currently set up so that sections 8.2, 8.4, and 8.6 apply to the entire agreement. The State of

Illinois, however, allows each state agency to manage their Federal funds independently, which means that the state uses

several different methods to calculate interest liabilities. Section 8.7 is included to distinguish that sections 8.2, 8.4, and

8.6 apply to only one state agency. The sections following these sections outline the same information contained in

sections 8.2, 8.4, and 8.6 for each state agency and/or CFDA # as appropriate.

8.7.1 Where applicable, the following language shall only apply to CFDA # 84.126.

A. Federal interest liabilities will be calculated in accordance with section 8.2.2. Money drawn down for indirect costs will

not be subject to Federal interest liability pursuant to 31 CFR Part 205.13.

B. The State shall use the methodology identified below to calculate state interest liabilities on refunds of $50,000 or

more.

When a refund is received, it is deposited and a subsequent Federal draw is adjusted by the amount of the refund. The

following equation will be used for calculating the state interest liabilitiy on refunds:

I=Refund Amount x Days Held by State x Daily Interest Rate, where

I=State interest liability.

Refund Amount = Dollar amount of the refund.

Days Held by State = The State agency will record the date the refund is deposited and the date the Federal draw that is

adjusted by the refund amount is deposited. The State shall measure the difference between these two dates in whole

calendar days.

Daily Interest Rate = the rate calculated by the Bureau of the Fiscal Service (of the U.S. Department of the Treasury) for

states with fiscal years beginning July 1.

C. Money drawn down for indirect costs will be excluded from the state interest liability calculation pursuant to 31 CFR

Part 205.13. The State shall use the following method to calculate State interest liabilities on Federal funds:

(1) Measuring Time Funds are Held

Deposit to Issuance; Issuance to Clearance:

Page 22 of 38
To determine the total time Federal funds are held, the State shall separately measure two time periods: (1) the date

Federal funds are deposited to the date checks are issued; and (2) the date checks are issued to the date funds are

debited from the State's account shall be the method for calculating clearance pattern as further defined in Section 7. The

clearance pattern as previously defined shall be reflected in whole day numbers in Exhibit II.

(2) Source of Data

Bank or Agency:

The time period from deposit to issuance shall be determined from information captured by the agency's accounting

system.

(3) Standards Applied

Statistical Sampling (Pre-Issuance):

To measure the time Federal funds are held in a State account prior to being disbursed, the State shall use statistical

sampling. The sample shall be randomly selected, and shall be of sufficient size to ensure, at a minimum, a 95%

confidence interval no wider than ± 0.3 dollar-weighted days about the estimated mean.

For each check in the sample population, the State shall:

1 subtract the deposit date from the issuance date

2 multiply the difference of step 1 by the check amount

3 divide the product of step 2 by the total amount of funds drawn in the sample to determine the dollar-weighted preissuance time for that check

The State shall then sum the dollar-weighted pre-issuance time for each check to arrive at the total dollar-weighted

average pre-issuance time to be used for calculating State interest liabilities.

Or

The Agency shall determine the time Federal funds are held in a State account prior to disbursement by calculating the

dollar-weighted average pre-issuance time for all Federal funds deposited during the state fiscal year for the applicable

grant. The Agency will identify all checks or warrants tied to the Federal fund deposits as its sample population.

(4) Calculation Procedure

I = P x r x (PI + CT)

I = State's total interest liability

P = Total annual draws of Federal funds for program or component cash flow of program

r = Annualized rate equal to the average equivalent yields of 13-week Treasury bills auctioned during a State's fiscal year

divided by 365 days

PI = Dollar-weighted average number of days Federal funds are held by State prior to issuance

Page 23 of 38
CT = Dollar-weighted average number of days Federal funds are held by State between issuance and clearance of

checks.

8.7.2 Where applicable, the following language shall only apply to CFDA # 10.557.

A. Federal interest liabilities will be calculated in accordance with Section 8.2.2.

B. The State shall use the following method to calculate State interest liabilities on Federal funds:

(1) Measuring Time Funds are Held

Deposit to Clearance

The Federal monies for WIC are deposited into a dedicated fund. The daily fund cash balance serves as a gauge for

measuring how long Federal funds are held. As such, the sum of the daily cash balance in the State fund serves as a

measure of Federal funds being held.

(2) Source of Data

The average daily cash balance will be determined through reports issued by the State Treasurer and state accounting

records.

(3) Standards Applied

The average daily cash balance of Federal funds in the State Treasury fund reflects the actual activity of each draw from

the date of deposit to the date of clearance. It is noted that the State Treasury fund includes Infant Formula Rebates.

The amount of Infant Formula Rebates not worked off will be subtracted from the daily cash balance to determine the

daily cash balance for interest calculation purposes.

(4) Calculation Procedure

Average Daily Balance:

I = ADB x R, where

I = State's total interest liability.

ADB = Average daily cash balance. This will be determined by summing up the daily cash balance for each day of the

fiscal year and dividing by the number of days in that fiscal year. The daily cash balance will be determined by summing

up the daily cash balance in the State Treasury fund and then subtracting the amount of Infant Formula Rebates not

worked off.

R= Daily interest rate as calculated by the Bureau of the Fiscal Service (of the U.S. Department of the Treasury) for states

with fiscal years beginning July 1.

8.7.3 The following language shall only apply to CFDA # 93.959.

A. The State shall use the following method to calculate Federal interest liabilities:

Page 24 of 38
Federal interest liabilities will be calculated in accordance with Section 8.2.2. Money drawn down for indirect costs will not

be subject to Federal interest liability pursuant to 31 CFR Part 205.13.

B. The State shall use the methodology identified below to calculate state interest liabilities on refunds of $50,000 or

more.

When a refund is received, it is deposited and a subsequent Federal draw is adjusted by the amount of the refund. The

following equation will be used for calculating the state interest liability on refunds:

I-Refund Amount x Days Held by interest Rate, where

I-State interest liability.

Refund Amount Dollar amount of the refund.

Days Held by State = the State agency will record the date the refund is deposited and the date the Federal draw that is

adjusted by the refund amount is deposited. The State shall measure the difference between these two dates in whole

calendar days.

Daily Interest Rate the rate calculated by the Bureau of the Fiscal Service (of the U.S. Department of the Treasury) for

states with the fiscal years beginning July 1.

C. Money drawn down for indirect costs will be excluded from the state interest liabilities on Federal Funds:

(1) Measuring Time Funds are Held

Deposit to Issuance: Issuance to Clearance:

To determine the total time Federal funds are held, the State shall separately measure two time periods: (1) the date

Federal funds are deposited to the date checks are issued; and (2) the date checks are issued to the date funds are

debited from the States account shall be the method for calculating clearance pattern as further defined in Section 7. The

clearance pattern as previously defined shall be reflected in whole day numbers in Exhibit II.

(2) Source of Data

Bank or Agency:

The time period from deposit to issuance shall be determined from information captured by the agencys accounting

system and data obtained through the Illinois Office of the Comptroller.

(3) Standards Applied

Statistical Sampling (Pre-Issuance)

To measure the time Federal funds are held in a State account prior to being disbursed, the State shall use statistical

sampling. The sample shall be randomly selected, and shall be of the sufficient size to ensure, at a minimum, a 95%

confidence interval no wider than +- 0.3 dollar-weighted days about the estimated mean.

For each check in the sample population, the State shall:

Page 25 of 38
1. Subtract the deposit date from the issuance date

2. Multiply the difference of step 1 by the check amount

3. Divide the product of step 2 by the total amount of funds draws in the sample to determine the dollar-weighted preissuance time for that check.

(4) Calculation Procedure

I=P * r * (PI + CT)

 I States total interest liability

 P = Total annual draws of Federal funds for program or component cash flow of program

 R = Annualized rate equal to the average equivalent yields of 13-week Treasury bills auction during a States fiscal year

 CT Dollar-weighted average number of the days Federal funds are held by the State between issuance and clearance of

checks

8.7.4 Where applicable, the following language shall only apply to CFDA # 20.106.

A. The State shall use the following method to calculate State interest liabilities on Federal funds:

(1) Measuring Time Funds are Held

Deposit to Clearance:

To determine the total time Federal funds are held, the State shall measure the time between the date Federal funds are

received and credited to a State's account and the date those funds are debited from the State's account.

(2) Source of Data

Clearance Patterns:

The time period from issuance of funds to the date funds are debited from the State's account shall be determined by the

appropriate clearance pattern specified in Exhibit II.

(3) Standards Applied

Statistical Sampling (Pre-Issuance):

To measure the time Federal funds are held in a State account prior to being disbursed, the State shall use statistical

sampling. The sample shall be randomly selected, and shall be of sufficient size to ensure, at a minimum, a 95%

confidence interval with a 5% precision factor and a 2% error rate.

For each check in the sample population, the State shall:

1 subtract the date the federally participating expenditure was paid by the Federal agency from the check clearance date

2 multiply the difference of step 1 by the amount of Federal funds identified with this payment

3 divide the product of step 2 by the total amount of funds drawn in the sample to determine the dollar-weighted preissuance time for that check

Page 26 of 38
Or

The State shall then sum the dollar-weighted pre-issuance time for each check to arrive at the total dollar-weighted

average pre-issuance time to be used for calculating State interest liabilities.

(4) Calculation Procedure

Average Daily Balance:

I = ADB x R, where

I = State's total interest liability

ADB = Average Daily Balance of cash in a program's account, measured from deposit to clearance

R = Annualized rate equal to the average equivalent yields of 13-week Treasury bills auctioned during a State's fiscal year

8.7.5 Where applicable, the following language shall only apply to programs operated by the Illinois State Board of

Education.

A. The State shall use the following method to calculate Federal interest liabilities:

Average Daily Balance:

The State shall track the actual cash activity for each Federal program by its own account. A negative cash balance at

the close of business indicates the State paid out its own funds for program purposes in the absence of supporting

Federal funds. The Federal interest liability shall be calculated by applying the daily interest to a program's negative cash

balance.

B. The State shall use the following methodology to calculate interest liabilities on refunds:

Refunds Deposited to Non-Interest Neutral Programs - Part of Liability Captured Under State's Pre-Issuance Calculation:

With programs to which applicable interest neutral funding techniques are applied, the State interest liability shall be

based on two periods: (1) the difference in whole days between the date the refund is deposited to a State account and

the date the refund is offset against a subsequent deposit of Federal funds; (2) the difference in whole days between the

date the refund is offset against a subsequent deposit of Federal funds and the date the refund is paid out for program

purposes.

Interest on refunds during period 1 will be calculated using the information recorded in a separate account. Interest on

refunds during period 2 will be captured under the State method for calculating interest under pre-issuance funding.

Under this method, interest is calculated on totals disbursed, which includes refunds on hand as well as amounts drawn.

The reported interest liability for refunds, therefore, will reflect period 1 only.

C. The State shall use the following method to calculate State interest liabilities on Federal funds:

(1) Measuring Time Funds are Held

Deposit to Clearance:

Page 27 of 38
To determine the total time Federal funds are held, the State shall measure the time between the date Federal funds are

received and credited to a State's account and the date those funds are debited from the State's account.

(2) Source of Data

Clearance Patterns:

The time period from issuance of funds to the date funds are debited from the State's account shall be determined by the

appropriate clearance pattern specified in Exhibit II.

(3) Standards Applied

Census (Average Daily Balance):

The average daily cash balance of Federal Funds in the fund's account reflects the actual activity of each draw from the

date of deposit to the date of issuance or clearance, whichever is pertinent.

(4) Calculation Procedure

Average Daily Balance + Clearance Pattern:

I = {ADB x R} + {P x r x T}, where

I = State's total interest liability

ADB = Average Daily Balance of cash in a fund's account, measured from deposit to clearance

R = Annualized rate equal to the average equivalent yields of 13-week Treasury bills auctioned during a State's fiscal year

P = Total annual expenditures of Federal funds for program or component cash flow of program

r = R/365 days

T = Dollar-weighted average day of clearance, as determined by the appropriate clearance pattern in Exhibit II

8.7.6 Where applicable, the following language shall only apply to programs operated by the Illinois Department of

Employment Security.

A. The State shall use the following method to calculate Federal interest liabilities:

Average Daily Balance-Modified:

The State shall track the actual cash activity for each Federal program by its own account. A negative cash balance at the

close of business indicates the State paid out its own funds for program purposes in the absence of supporting Federal

funds. The Federal interest liability shall be calculated using the interest liability for each day's net transaction cash

balance for the period from the effective date of the transaction to the end of the State's fiscal year.

B. The State shall use the following two methods to calculate interest liabilities on refunds:

Refunds Deposited to Interest Neutral Programs:

Page 28 of 38
With programs to which applicable interest neutral funding techniques are applied, the State interest liability shall be

based on the difference in whole days between the date the refund is deposited in a State account and the date the

refund is offset against a subsequent deposit of Federal funds.

Refunds Deposited to Non-Interest Neutral Programs - Part of Liability Captured Under State's Pre-Issuance Calculation:

With programs to which applicable interest neutral funding techniques are applied, the State interest liability shall be

based on two periods: (1) the difference in whole days between the date the refund is deposited to a State account and

the date the refund is offset against a subsequent deposit of Federal funds; (2) the difference in whole days between the

date the refund is offset against a subsequent deposit of Federal funds and the date the refund is paid out for program

purposes.

Interest on refunds during period 1 will be calculated using the information recorded in a separate account. Interest on

refunds during period 2 will be captured under the State method for calculating interest under pre-issuance funding. Under

this method, interest is calculated on totals disbursed, which includes refunds on hand as well as amounts drawn. The

reported interest liability for refunds, therefore, will reflect period 1 only.

C. The State shall use the following method to calculate State interest liabilities on Federal funds:

(1) Measuring Time Funds are Held

Deposit to Issuance; Issuance to Clearance:

To determine the total time Federal funds are held, the State shall separately measure two time periods: (1) the date

Federal funds are deposited to the date checks are issued; and (2) the date checks are issued to the date funds are

debited from the State's account.

(2) Source of Data

Bank or Agency:

The agency shall use their own accounting system, which provides transaction dates. These transaction dates are

converted to cash to an actual cash basis using processing data (date vouchered to date warrant or ACH is issued) plus

clearance patterns (for disbursements) and adding one business day for draws requested via ACH.

(3) Standards Applied

Census (Average Daily Balance):

The average daily cash balance of Federal Funds in the program's account reflects the actual activity of each draw from

the date of deposit to the date of issuance or clearance, whichever is pertinent.

Statistical Sampling (Pre-Issuance):

To measure the time Federal funds are held in a State account prior to being disbursed, the State shall use statistical

sampling. The sample shall be randomly selected, and shall be of sufficient size to ensure, at a minimum, a 95%

confidence interval no wider than ± 0.3 dollar-weighted days about the estimated mean.

For each check in the sample population, the State shall:

1 subtract the deposit date from the issuance date

2 multiply the difference of step 1 by the check amount

Page 29 of 38
3 divide the product of step 2 by the total amount of funds drawn in the sample to determine the dollar-weighted preissuance time for that check

The State shall then sum the dollar-weighted pre-issuance time for each check to arrive at the total dollar-weighted

average pre-issuance time to be used for calculating State interest liabilities.

(4) Calculation Procedure

Average Daily Balance:

I = ADB x R, where

I = State's total interest liability

ADB = Average Daily Balance of cash in a program's account, measured from deposit to clearance

R = Annualized rate equal to the average equivalent yields of 13-week Treasury bills auctioned during a State's fiscal year

8.7.7 Where applicable, the following language shall only apply to programs operated by the Illinois Department of

Commerce and Economic Opportunity.

A. The State shall use the following method to calculate Federal interest liabilities:

Average Daily Balance:

The State shall track the actual cash activity for each Federal program by looking at the close of business fund balance

per the Comptroller on working days. A negative cash balance at the close of business indicates the State paid out its own

funds for program purposes in the absence of supporting Federal funds. The Federal interest liability shall be calculated

by applying the daily interest to a program's negative cash balance.

B. The State shall use the following methodology to calculate interest liabilities on refunds:

Refunds Deposited to Non-Interest Neutral Programs - Part of Liability Captured Under State's Pre-Issuance Calculation:

With programs to which applicable interest neutral funding techniques are applied, the State interest liability shall be

based on two periods: (1) the difference in whole days between the date the refund is deposited to a State account and

the date the refund is offset against a subsequent deposit of Federal funds; (2) the difference in whole days between the

date the refund is offset against a subsequent deposit of Federal funds and the date the refund is paid out for program

purposes.

Interest on refunds during period 1 will be calculated using the information recorded in a separate account. Interest on

refunds during period 2 will be captured under the State method for calculating interest under pre-issuance funding. Under

this method, interest is calculated on totals disbursed, which includes refunds on hand as well as amounts drawn. The

reported interest liability for refunds, therefore, will reflect period 1 only.

C. The State shall use the following method to calculate State interest liabilities on Federal funds:

(1) Measuring Time Funds are Held

Deposit to Issuance; Issuance to Clearance:

Page 30 of 38
To determine the total time Federal funds are held, the State shall separately measure two time periods: (1) the date

Federal funds are deposited to the date checks are issued; and (2) the date checks are issued to the date funds are

debited from the State's account.

(2) Source of Data

Clearance Patterns:

The time period from issuance of funds to the date funds are debited from the State's account shall be determined by the

appropriate clearance pattern specified in Exhibit II.

(3) Standards Applied

Statistical Sampling (Pre-Issuance):

To measure the time Federal funds are held in a State account prior to being disbursed, the State shall use statistical

sampling. The sample shall be randomly selected, and shall be of sufficient size to ensure, at a minimum, a 95%

confidence interval no wider than ± 0.3 dollar-weighted days about the estimated mean.

For each check in the sample population, the State shall:

1 subtract the deposit date from the issuance date

2 multiply the difference of step 1 by the check amount

3 divide the product of step 2 by the total amount of funds drawn in the sample to determine the dollar-weighted preissuance time for that check

The State shall then sum the dollar-weighted pre-issuance time for each check to arrive at the total dollar-weighted

average pre-issuance time to be used for calculating State interest liabilities.

(4) Calculation Procedure

Segment A: The Time of the recording of the receipt by the Comptroller to the issuance of the warrant.

[Average Daily Balance] * [Interest Rate]

Segment B: The time from the issuance of the warrant to the presentation of the warrant to the Treasury for payment.

([Program Total] - [CMIA Covered Share of EFT]) * [Payroll % of Warrants] * [Interest Rate] * [Payroll Average Clearance

Pattern/365]

AND

([Program Total] - [CMIA Covered Share of EFT]) * [Non-Payroll % of Warrants] * [Interest Rate] * [Non-Payroll Average

Clearance Pattern/365]

Interest Liability = Segment A + Segment B

9.0 REVERSE FLOW PROGRAMS

Page 31 of 38
The State is not required to cover any reverse flow programs under the terms of this Agreement because the State does

not participate in the program.

10.0 INTEREST CALCULATION COSTS

10.1 As set forth in 31 CFR 205.27, interest calculation costs are defined as those costs necessary for the actual

calculation of interest, including the cost of developing and maintaining clearance patterns in support of the interest

calculations. Interest calculation costs do not include expenses for normal disbursing services, such as processing of

checks or maintaining records for accounting and reconciliation of cash balances, or expenses for upgrading or

modernizing accounting systems. Interest calculation costs in excess of $50,000 in any year are not eligible for

reimbursement, unless the State provides justification with the annual report.

10.2 The State expects to incur the following types of interest calculation costs:

Personnel costs for interest calculation and clearance pattern development

10.3 The State shall submit all claims for reimbursement of interest calculation costs with its Annual Report in accordance

with 31 CFR 205.

11.0 NON-COMPLIANCE

11.1 The provisions of 31 CFR Part 205.29 and 31 CFR Part 205.30 shall apply in cases of non-compliance with the

terms of this Agreement.

Page 32 of 38
12.0 AUTHORIZED SIGNATURES

Alexis Sturm

Director, Governor's Office of Management and Budget

Signature:________________________________________Date Signed:_______________

Date Submitted 09/29/2020

Sandra Paylor Sanders

Acting Assistant Commissioner

Revenue Collections Management

Bureau of the Fiscal Service

U.S. Department of the Treasury

Signature:________________________________________Date Signed:_______________

Page 33 of 38

Alexis Sturm (Sep 30, 2020 18:19 CDT)

Sep 30, 2020

Sandra R. Paylor (Oct 13, 2020 07:03 EDT) Sandra R. Paylor

Oct 13, 2020
Exhibit I - Funds Request and Receipt Times Schedule

State of Illinois

Federal Agency Payment Type Request Cut-Off Time Receipt Window

Agriculture-FNS ACH 11:59 PM 1 day

Agriculture-FNS Fedwire 5:45 PM 0 day

Agriculture-FS ACH 3:00 PM 1 day

Air National Guard ACH 12:00 PM 15 days

Army National Guard ACH 12:00 PM 15 days

Commerce-NOAA ACH 2:00 PM 1 day

Dept of Homeland Security (FEMA) Fedwire 2:00 PM 2 days

Dept of Homeland Security (ODP) ACH 2:00 PM 2 days

Dept of Homeland Security (ODP) Fedwire 2:00 PM 2 days

EPA ACH 2:00 PM 2 days

EPA Fedwire 2:00 PM 0 day

Education ACH 3:00 PM 1 day

Education Fedwire 2:00 PM 0 day

Energy ACH 4:00 PM 1 day

Energy Fedwire 3:00 PM 0 day

HHS ACH 5:00 PM 1 day

HHS Fedwire 3:00 PM 0 day

HUD ACH 5:30 PM 2 days

HUD Fedwire 3:00 PM 0 day

Interior-FWS ACH 11:59 PM 1 day

Interior-FWS Fedwire 5:45 PM 0 day

Interior-OSM ACH 3:00 PM 1 day

Interior-OSM Fedwire 1:00 PM 0 day

Justice ACH 11:00 PM 6 days

Justice Fedwire 2:00 PM 2 days

Labor-Non-UTF ACH 3:00 PM 1 day

Labor-UTF ACH 3:00 PM 1 day

Labor-UTF Fedwire 3:00 PM 0 day

National Science Foundation (NSF) ACH 8:00 PM 1 day

National Science Foundation (NSF) Fedwire 5:45 PM 0 day

Social Security Administration ACH 11:59 PM 1 day

Social Security Administration Fedwire 5:45 PM 0 day

Transportation (FAA) ACH 2:00 PM 1 day

Transportation (FHWA) ACH 12:00 PM 3 days

Transportation (FHWA) Fedwire 12:00 PM 0 day

Transportation (FTA) ACH 2:00 PM 1 day

Veterans Administration ACH 12:00 PM 3 days

Page 34 of 38
Exhibit II - State of Illinois

LIST OF STATE CLEARANCE TIMES

(Rounded Dollar-Weighted Average Day of Clearance)

Clearance Times Where the Timing of A Draw Down Is Based on A Clearance

Pattern

CFDA Program Name Recipient % Component Technique Round

ed

days

10.551 Supplemental Nutrition

Assistance Program

Department of Human

Services (DHS)

100.

00

Program Modified Actual

Clearance, ZBA - ACH

N/A

10.553 School Breakfast

Program

State Board of Education

(SBE)

97.0

0

Program Pre-Issuance N/A

10.553 School Breakfast

Program

State Board of Education

(SBE)

1.00 Payroll Pre-Issuance N/A

10.553 School Breakfast

Program

State Board of Education

(SBE)

1.00 Indirect Costs Payment Schedule -

Quarterly

N/A

10.553 School Breakfast

Program

State Board of Education

(SBE)

1.00 Administration Pre-Issuance N/A

10.555 National School Lunch

Program

State Board of Education

(SBE)

100.

00

Program Pre-Issuance N/A

10.557 Special Supplemental

Nutrition Program for

Women, Infants, and

Children

Department of Human

Services (DHS)

2.00 Payroll Modified Payment

Schedule - Semi-Monthly

N/A

10.557 Special Supplemental

Nutrition Program for

Women, Infants, and

Children

Department of Human

Services (DHS)

97.0

0

Program Pre-Issuance N/A

10.557 Special Supplemental

Nutrition Program for

Women, Infants, and

Children

Department of Human

Services (DHS)

1.00 Admin Pre-Issuance N/A

10.558 Child and Adult Care

Food Program

State Board of Education

(SBE)

1.00 Admin Pre-Issuance N/A

10.558 Child and Adult Care

Food Program

State Board of Education

(SBE)

1.00 Indirect Payment Schedule -

Quarterly

N/A

10.558 Child and Adult Care

Food Program

State Board of Education

(SBE)

1.00 Payroll Pre-Issuance N/A

10.558 Child and Adult Care

Food Program

State Board of Education

(SBE)

97.0

0

Program Pre-Issuance N/A

10.561 State Administrative

Matching Grants for the

Supplemental Nutrition

Assistance Program

Department of Human

Services (DHS)

100.

00

All Funds Modified Payment

Schedule - Semi-Monthly

N/A

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

Department of

Employment Security

(DES)

79.0

0

Program Pre-Issuance N/A

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

Department of

Employment Security

(DES)

15.0

0

Payroll Modified Payment

Schedule - Semi-Monthly

with Reconciliation

N/A

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

Department of

Employment Security

(DES)

6.00 Admin Modified Payment

Schedule - Semi-Monthly

with Reconciliation

N/A

Page 35 of 38
CFDA Program Name Recipient % Component Technique Round

ed

days

17.225S Unemployment Insurance

-- State Benefit Account

Department of

Employment Security

(DES)

100.

00

Program Pre-Issuance N/A

20.205 Highway Planning and

Construction

Department of

Transportation (DOT)

2.00 Payroll Modified Payment

Schedule - Weekly

(Thursday)

N/A

20.205 Highway Planning and

Construction

Department of

Transportation (DOT)

98.0

0

Program Modified Payment

Schedule - Weekly

(Thursday)

N/A

66.458 Capitalization Grants for

Clean Water State

Revolving Funds

Illinois Environmental

Protection Agency

(IEPA)

100.

00

Program Capitalization Grants for

State Revolving Funds

N/A

84.010 Title I Grants to Local

Educational Agencies

State Board of Education

(SBE)

1.00 Admin Pre-Issuance N/A

84.010 Title I Grants to Local

Educational Agencies

State Board of Education

(SBE)

1.00 Indirect Payment Schedule -

Quarterly

N/A

84.010 Title I Grants to Local

Educational Agencies

State Board of Education

(SBE)

1.00 Payroll Pre-Issuance N/A

84.010 Title I Grants to Local

Educational Agencies

State Board of Education

(SBE)

97.0

0

Program Pre-Issuance N/A

84.027 Special Education --

Grants to States

State Board of Education

(SBE)

1.00 Payroll Pre-Issuance N/A

84.027 Special Education --

Grants to States

State Board of Education

(SBE)

1.00 Indirect Payment Schedule -

Quarterly

N/A

84.027 Special Education --

Grants to States

State Board of Education

(SBE)

2.00 Admin Pre-Issuance N/A

84.027 Special Education --

Grants to States

State Board of Education

(SBE)

96.0

0

Program Pre-Issuance N/A

84.126 Rehabilitation Services --

Vocational Rehabilitation

Grants to States

Department of Children

and Family Services

(DCFS)

6.00 Indirect Indirect Costs - Quarterly

with Reconciliation

N/A

84.126 Rehabilitation Services --

Vocational Rehabilitation

Grants to States

Department of Human

Services (DHS)

48.0

0

Direct Payroll Modified Payment

Schedule - Semi-Monthly

N/A

84.126 Rehabilitation Services --

Vocational Rehabilitation

Grants to States

Department of Human

Services (DHS)

46.0

0

Program Pre-Issuance N/A

84.367 Improving Teacher

Quality State Grants

State Board of Education

(SBE)

97.0

0

Program Pre-Issuance N/A

84.367 Improving Teacher

Quality State Grants

State Board of Education

(SBE)

1.00 Indirect Payment Schedule -

Quarterly

N/A

84.367 Improving Teacher

Quality State Grants

State Board of Education

(SBE)

1.00 Payroll Pre-Issuance N/A

84.367 Improving Teacher

Quality State Grants

State Board of Education

(SBE)

1.00 Admin Pre-Issuance N/A

93.558 Temporary Assistance for

Needy Families

Department of Children

and Family Services

(DCFS)

41.0

0

Program Payment Schedule -

Monthly

N/A

93.558 Temporary Assistance for

Needy Families

Department of Human

Services (DHS)

38.0

0

Program Payment Schedule -

Monthly

N/A

93.558 Temporary Assistance for

Needy Families

Illinois Student

Assistance Commission

(ISAC)

12.0

0

Program Payment Schedule -

Monthly

N/A

93.558 Temporary Assistance for

Needy Families

State Board of Education

(SBE)

9.00 Program Payment Schedule -

Monthly

N/A

93.563 Child Support

Enforcement

Department of Healthcare

& Family Services (HFS)

100.

00

Admin Modified Actual Costs -

Estimated Allocation -

Semi-Monthly

N/A

93.568 Low-Income Home

Energy Assistance

Department of

Commerce & Economic

Opportunity (DCEO)

96.0

0

Program Average Clearance 3 Days

Page 36 of 38
CFDA Program Name Recipient % Component Technique Round

ed

days

93.568 Low-Income Home

Energy Assistance

Department of

Commerce & Economic

Opportunity (DCEO)

4.00 Payroll Average Clearance 4 Days

93.575 Child Care and

Development Block Grant

Department of Human

Services (DHS)

100.

00

Program Payment Schedule -

Monthly

N/A

93.596 Child Care Mandatory

and Matching Funds of

the Child Care and

Development Fund

Department of Human

Services (DHS)

100.

00

All Funds Payment Schedule -

Monthly

N/A

93.658 Foster Care -- Title IV-E Department of Children

and Family Services

(DCFS)

67.0

0

Program Modified Payment

Schedule - Monthly

N/A

93.658 Foster Care -- Title IV-E Department of Children

and Family Services

(DCFS)

3.00 Indirect Modified Payment

Schedule - Monthly

N/A

93.658 Foster Care -- Title IV-E Department of Children

and Family Services

(DCFS)

13.0

0

Admin Modified Payment

Schedule - Monthly

N/A

93.658 Foster Care -- Title IV-E Department of Children

and Family Services

(DCFS)

17.0

0

Payroll Modified Payment

Schedule - Monthly

N/A

93.659 Adoption Assistance Department of Children

and Family Services

(DCFS)

6.00 Admin Modified Payment

Schedule - Monthly

N/A

93.659 Adoption Assistance Department of Children

and Family Services

(DCFS)

1.00 Indirect Modified Payment

Schedule - Monthly

N/A

93.659 Adoption Assistance Department of Children

and Family Services

(DCFS)

90.0

0

Program Modified Payment

Schedule - Monthly

N/A

93.659 Adoption Assistance Department of Children

and Family Services

(DCFS)

3.00 Payroll Modified Payment

Schedule - Monthly

N/A

93.667 Social Services Block

Grant

Department of Human

Services (DHS)

100.

00

Program Payment Schedule -

Monthly

N/A

93.767 Children's Health

Insurance Program

Department of Healthcare

& Family Services (HFS)

90.0

0

Program Average Clearance 3 Days

93.767 Children's Health

Insurance Program

Department of Healthcare

& Family Services (HFS)

6.00 Admin Modified Actual Costs -

Estimated Allocation -

Semi-Monthly

N/A

93.767 Children's Health

Insurance Program

Department of Healthcare

& Family Services (HFS)

4.00 Program Reimbursement Funding N/A

93.778 Medical Assistance

Program

Department of Healthcare

& Family Services (HFS)

15.0

0

Program Pre-Issuance N/A

93.778 Medical Assistance

Program

Department of Healthcare

& Family Services (HFS)

2.00 Admin Direct Administrative

Costs - Drawdowns at

Fixed Intervals

N/A

93.778 Medical Assistance

Program

Department of Healthcare

& Family Services (HFS)

6.00 Admin Modified Actual Costs -

Estimated Allocation -

Semi-Monthly

N/A

93.778 Medical Assistance

Program

Department of Healthcare

& Family Services (HFS)

69.0

0

Program Average Clearance 3 Days

93.778 Medical Assistance

Program

Department of Healthcare

& Family Services (HFS)

6.00 Program Modified Payment

Schedule - Weekly

N/A

93.778 Medical Assistance

Program

Department of Healthcare

& Family Services (HFS)

2.00 Program Pre-Issuance N/A

96.001 Social Security --

Disability Insurance

Department of Human

Services (DHS)

62.0

0

Payroll Modified Payment

Schedule - Semi-Monthly

N/A

96.001 Social Security --

Disability Insurance

Department of Human

Services (DHS)

11.0

0

Indirect Costs Indirect Costs - Quarterly

with Reconciliation

N/A

96.001 Social Security --

Disability Insurance

Department of Human

Services (DHS)

27.0

0

Program Pre-Issuance N/A

Page 37 of 38
________________________________________________________________________________________________________

I hereby certify that an authorized State official has certified at least every five years that the "Rounded Days of Clearance" listed in

Exhibit 2 of this Treasury-State Agreement:

1. Have been prepared in accordance with the standards provided in 31 CFR 205.20;

2. Accurately represent the flow of Federal funds under the Federal assistance programs to which they apply;

3. Reflect seasonal or other periodic variations in the clearance activities; and,

4. Are auditable.

Date: ___________________________________________________________

Printed Name: ____________________________________________________

Certifying Signature: _______________________________________________

Title: ___________________________________________________________

Page 38 of 38

Alexis Sturm (Sep 30, 2020 18:19 CDT)

Director, Governor's Office of Management and Budget Sep 30, 2020 Alexis Sturm